department of finance - dbm.gov.ph · zbiak-na-bato constitution (november 1, 1897) created under...

131

Legal Basis

Biak-na-Bato Constitution (November 1, 1897) created under the First Philippine Republicheaded by General Emilio Aguinaldo a Supreme Council one of whose members was theSecretary of the Treasury who was before that the Director of Finance.

Civil Service Act of 1901 (September 1, 1901) formally organized the Department of Financeand Justice.

Reorganization Act No. 2666 (November 18, 1916) divided the Department of Finance andJustice into two independent departments.

Presidential Decree No. 1397 (June 2, 1978) transformed the Department of Finance (DOF) intothe Ministry of Finance (MOF) under a parliamentary form of government.

Executive Order No. 127 (January 30, 1987) and No. 127-A (July 22, 1987) reorganized theMOF.

Executive Order No. 292 (July 25, 1987), the Administrative Code of 1987, reverted the MOFinto the DOF, providing for its powers and functions and organizational structure.

Mandate

The Department of Finance (DOF) is responsible for the sound and efficient management of thefinancial resources of the government by formulating, institutionalizing, and administering fiscalpolicies in coordination with other agencies of the government; generating and managing thefinancial resources of government; supervising the revenue operations of all local governmentunits; and reviewing, approving, and managing all public sector debt, domestic or foreign. It isalso responsible for the rationalization, privatization, and public accountability of corporations andassets owned, controlled, or acquired by the government.

DEPARTMENT OF FINANCE

132

LOGICAL FRAMEWORK (DOF)

Societal Goal

Sectoral Goal

Organizational Outcomes

Major Final Outputs

N.B. The DOF has no submission of Performance Indicators and Targets for department-wide logframe. PIs and Targets of attached agenciesare shown in their respective agency logframes.

Economic Growth

Fiscal Strength

National Government

Fiscal Sustainability

Fiscal Policies, (Domestic and Inter-national) Plans and Programs

Policies, Plans and Programsfor Domestic Financial and Capital Market Develop-ment

Policies, Plans and Programs for the Govern-ment Corporate Sector as well as Other Govern-ment assets

Policy Over-sight on LGU’s Finan-cial Opera- tions


of LGUs

Effective Asset and Debt

Management

Environment Supportive of Financial

Services and Capital Market

Anti-Corrupt-ion in Public Finance Manage- ment, Anti-Smug-gling and Tax Evasion Activities and Exercise of Regula-tory Power

Adminis- tration of Locally -Sourced and ODA Funds for LGUs

Cash and Debt Manage- ment Services,Account-ing & Monitor-ing of NG Transact-ions and Research on Fiscal Matters

Revenue Generation

Policies, Plans and Programs for Public Sector Debt Manage-ment as well as Risk Manage-ment

EnvironmentSupportive

of Financial Services& the Capital Market

A

s’

133

% SHARE

MFO 1Fiscal policies (domestic and international), plans and programs 1,297,986 793,379 85,094 2,176,459 21.37%MFO 2Cash and debt management serv ices, accounting and monitoring of NG transactions and research on fiscal matters 247,389 317,624 46,238 611,251 6.00%MFO 3Revenue generation 2,738,577 1,872,523 53,005 4,664,105 45.80%MFO 4Anti-corruption in public finance management, anti-smuggling and tax evasion activ ities and exercise of regulatory power 1,210,117 690,102 37,019 1,937,238 19.02%MFO 5Policies, plans and programs for domestic financial and capital market development 247,388 115,004 70,333 432,725 4.25%MFO 6Policies, plans and programs for public sector debt management as well as risk management 43,628 37,345 12,057 93,030 0.91%MFO 7Policies, plans and programs for the government corporate sector as well as other government assets 37,266 26,674 6,716 70,656 0.70%MFO 8Policy oversight on LGUs' financial operations 85,586 69,096 9,152 163,834 1.61%MFO 9Administration of locally-sourced and ODA funds for LGUs 12,360 15,522 6,759 34,641 0.34%

TOTAL 5,920,297 3,937,269 326,373 10,183,939 % SHARE 58.13% 38.67% 3.20% 100.00%

FY 2009 MFO BUDGET

By MFO/By Expense Class(In thousand pesos)

Particulars PS MOOE CO TOTAL

By MFO (Total Budget = P10,183,939,000)

MFO 121.37%

MFO 26.00%

MFO 345.80%

MFO 419.02%

MFO 54.25%

MFO 60.91% MFO 9

0.34%

MFO 81.61%MFO 7

0.70%

Administration of ODA loans

A. Provide loans and grants to

134

DOF-OSEC 294,633 39,916 17,949 23,096 34,132 34,641 444,367 4.363%BOC 253,302 1,388,183 136,490 1,777,975 17.459%BIR 1,564,571 3,275,922 1,760,832 6,601,325 64.821%BLGF 19,179 163,834 183,013 1.797%BTr 611,251 69,934 681,185 6.689%CBAA 8,756 8,756 0.086%CDA 258,630 258,630 2.540%FIRB 123 123 0.001%IC 156,146 156,146 1.533%NTRC 35,895 35,895 0.352%PMO 36,524 36,524 0.359%TOTAL 2,176,459 611,251 4,664,105 1,937,238 432,725 93,030 70,656 163,834 34,641 10,183,939% SHARE 21.37% 6.00% 45.80% 19.02% 4.25% 0.91% 0.70% 1.61% 0.34% 100.00%

Particulars MFO1 MFO2 MFO3

By Agency / By MFO(In thousand pesos)

MFO8 MFO9 TOTAL % SHARE MFO4 MFO5 MFO6 MFO7

DOF - OSEC4.363%

CDA2.540%

FIRB0.001%

IC1.533%

NTRC0.352%

PMO0.359%

BTr6.689%

CBAA0.086%

BLGF1.797%

BIR64.821%

BOC17.459%

By Agency(Total Budget = P10,183,939,000)

135

%S HARE

Office of the Secretary 138,460 218,887 87,020 444,367 4.363%Bureau of Customs 1,078,050 699,925 - 1,777,975 17.459%Bureau of Internal Revenue 4,019,033 2,474,118 108,174 6,601,325 64.821%Bureau of Local Government F inance 97,675 74,938 10,400 183,013 1.797%Bureau of the Treasury 283,889 343,525 53,771 681,185 6.689%Central Board of Assessment Appeals 7,687 1,069 - 8,756 0.086%Cooperative Development Authority 184,350 63,490 10,790 258,630 2.540%Fiscal Incentives Rev iew Board 123 123 0.001%Insurance Commission 58,106 42,022 56,018 156,146 1.533%National Tax Research Center 24,396 11,299 200 35,895 0.352%Privatization and Management Office 28,651 7,873 36,524 0.359%

TOTAL 5,920,297 3,937,269 326,373 10,183,939 % S hare 58.13% 38.67% 3.20% 100.00%

TOTAL

By Agency / By Expense Class(In thousand pesos)

Particulars PS MOOE CO

By Expense Class (Total Budget = P10,183,939,000)

PS58.13%

CO3.20%

MOOE38.67%

136

Economic Growth

Fiscal Strength

NationalGovernment Fiscal

Sustainability

EnvironmentSupportive

of Capital MarketDevelopment

Effective Assetand

Debt Management

FiscalSustainability

of LGUs

FiscalPolicies,(DomesticandInternational)Plans andPrograms

Anti-Corruption inPublicFinanceManagementand Exercise ofRegulatoryPower

Policies,Plans andProgramsfor DomesticFinancialand CapitalMarketDevelop-ment

Policies,Plans andPrograms forPublic SectorDebtManage-ment

Policies,Plans andPrograms fortheGovernmentCorporateSector aswell as OtherGovernmentAssets

Adminis-tration ofLocally-Sourcedand ODAFunds forLGUs

CloseMonitoring ofthe RevenueCollectionPerformance inCoordinationwith theConcernedBureau orAgency (BOC,BIR and BTr)

EffectiveFinancial andFiscalProgramming

CloseMonitoring andSupervision ofthe PlanningandMobilization ofGovernmentResources

Conduct ofIntelligence FactFindingInvestigationand LifestyleCheck

Filing ofAdministrativeand CriminalCases forProsecution withthe Ombudsman

Review ofCurrentSystems,Processes,Procedures inDOF, BOC, BIR,and OtherAttachedAgencies

Implementationof Policies,Plans andProgramswith Respectto Financialand CapitalMarketDevelopment

AdvocacyandCoordination

RegulatoryPolicyOversight ofAgenciesunder DOF

Managing ofConcessionalLoans fromForeignCountries

Establishinga Debt &ManagementSystem,includingManagementof ContingentLiabilities

Monitoring,PerformanceEvaluation andCoordination of theGovt CorporateSector

Strengthening ofCorporateGovernancePractices in GOCCs/GFIs, Including theuse of CorporateGovernanceScorecard

Review ofCurrent PoliciesAffecting GOCCs/GFIs to EnsureConsistency withNational Plans andPrograms

Strengthening ofPrivatization [IloiloAirport, Al AmanahIslamic & InvestmentBank, and OtherAssets Held byDisposition Entities(PMO & PCGG)]

Administeringof Loans andGrantsto LGUs

Establishing/Developingof FinancingFacilities forLGUs

LOGICAL FRAMEWORK (DOF-OSEC)

Societal Goal

Sectoral Goal

Organizational Outcomes

Major Final Outputs

P/A/Ps

DOF - Office of the Secretary

in Public & Programs and Programsfor PublicSector Debt

and Programsfor the

as well as Other

for LGUs

-

with theOmbudsmanfor Prosecution

137

PERFORMANCE MEASURES AND TARGETS(Amounts in thousand pesos)

MFO 1 Fiscal policies (domestic and international)plans and programs P 205,350 P 239,316 P 294,633

Tax revenue as a percentage of GDP increased to 15.6% by 2007 15.30% 15.60% 15.20%

MFO 2 Anti-corruption in public finance managementand exercise of regulatory power P 27,562 P 34,740 P 39,916

Number of cases filed with the Ombudsman 15 20 24Number of cases recommended for filing by the Ombudsman with theSandiganbayan and the RTC vs. number of cases filed with the Ombudsman 2 20 22

MFO 3 Policies, plans and programs for domestic financial and capital market development P 12,400 P 15,440 P 17,949

% of policy recommendation adopted by Capital Non- Non-Market Development Council Quantifiable Quantifiable 1Higher level of private sector participation in the Non- Non-delivery of financial services Quantifiable Quantifiable 1

MFO 4Policies, plans and programs for public sectordebt management P 15,960 P 23,160 P 23,096

NG debt % of GDP reduced to 54.8% by 2007 62% 54.8% Open

MFO 5Policies, plans and programs for the government corporatesector as well as other government assets P 23,572 P 27,020 P 34,132

Dividend remittance from GOCC (in MP) 9,159,371 4,000 4,400Proceeds from asset privatization remitted to BTr (in MP) 90,600 29,562 2,000

MFO 6 Administration of locally-sourced and ODA funds for LGUs P 23,940 P 46,319 P34,641

Repayment rate 97% 98% 94%No. of LGUs availed of ODA funds 340 209 21

TOTAL P 308,784 P 385,995 P 444,367

ParticularsTarget/Amount Target/AmountActual/Amount

FY 2007 FY 2008 FY 2009

138

PS31.16%

CO19.58%

MOOE49.26%

FY 2009 MFO BUDGET


MFO 1 F iscal policies (domestic and international)plans and programs 92,672 144,277 57,684 294,633 66.30%MFO 2 Anti-corruption in public finance managementand exercise of regulatory power 12,753 19,351 7,812 39,916 8.98%MFO 3 Policies, plans and programs for domestic financial and capital market development 4,932 9,492 3,525 17,949 4.04%MFO 4Policies, plans and programs for public sectordebt management 7,128 11,444 4,524 23,096 5.20%MFO 5Policies, plans and programs for the government corporatesector as well as other government assets 8,615 18,801 6,716 34,132 7.68%MFO 6 Administration of locally -sourced and ODA funds for LGUs 12,360 15,522 6,759 34,641 7.80%

TOTAL 138,460 218,887 87,020 444,367 % S hare 31.16% 49.26% 19.58% 100.00%

% S HAREParticulars PS MOOE CO TOTAL

MF O 16 6 .30 %

MF O 28 .98 %

MF O 34 .0 4 %

MF O 45 .2 0 %

MF O 57 .6 8 %

MF O 67 .8 0 %

By MFO(Total Budget = P444,367,000)

By Expense Class (Total Budget = P444,367,000)

139

Legal Basis

Act No. 355 (February 6, 1902), “The Philippine Customs Administrative Act”, created the customsservice of the Philippines to collect all revenues warranted by law.

Executive Order No. 127 (January 30, 1987) reorganized/expanded the organization of the Bureauof Customs (BOC)-Central Office by providing units to monitor and coordinate assessment andoperations of the Bureau.

Executive Order No. 463 (January 9, 1998) created the Management Information System andTechnology Group (MISTG) to ensure the implementation of the BOC’s computerization program.

Republic Act No. 9335 (January 25, 2005), otherwise known as the Attrition Act of 2005, providedfor a system of rewards and sanctions to enhance revenue performance through the creation ofa Rewards and Incentives Fund and a Revenue Performance Evaluation Board within the Bureauof Internal Revenue and the BOC.

Mandate

The Bureau of Customs (BOC) implements an effective revenue collection by preventing andsuppressing smuggling and the entry of prohibited imported goods. It supervises and controls theentrance and clearance of vessels and aircrafts engaged in foreign commerce. It also enforcesthe Tariff and Customs Code of the Philippines and all other laws, rules and regulations related totariff and customs administration.

Bureau of Customs

140

LOGICAL FRAMEWORK (BOC) Societal Goal Sectoral Goal Organizational Outcomes Major Final Outputs P/A/Ps

Economic Growth

Fiscal Strength, Enhancement of Trade and National Security

Customs Revenue Collection

Trade Facilitation Community and Business Protection

Assessment and collection

Enhancement of Tariff and customs Laws & Regulations

Clearance of Import and Export Cargoes

Anti-smuggling Campaign and Implementation of Judicial Decisions, including Filing of Cases

Enforcement of International Commitments, Including Anti-dumping Provisions

Strict implementation of policies on warehousing and auction Close monitoring of regulations of all imports/exports shipments

Expediting resolution of cases involving violation of the TCCP as attended Filing cases for violations of the post entry audit provisions of the TCCP, especially on failure to keep records

Facilitating processing of import and export shipments Institutionalizing paperless, queless release of importations Installing X-ray machines and radio active portal monitor to intensify the scanning of shipments

Identifying modus operandi and unscrupulous persons involved in illegal activities Purging ghost/fictitious companies from the list of accredited companies Revising and strengthening the “Reward System”

Filing administrative and criminal cases against erring brokers, importers and/or representatives Enforcing laws on IPR, anti-dumping, special safeguard measures, quarantine and international commitment on multilateral environmental agreement

LOGICAL FRAMEWORK (BOC)

Collection

of Judicial DecisionsCustoms

141

FY 2007 FY 2008 FY 2009

MFO 1Assessment and collection P 816,305 P 761,839 P 1,138,736

Duties and taxes collected (in MP) 209,439 254,476 300,059Percentage of collection over target 89.07% 100% 100%

MFO 2Enforcement of tariff and customs laws and regulations P 373,198 P 439,155 P 253,302

No. of CMOs, EOs and RAs issued 78 69 77Number of cases filed against v iolators of the TCCP as attended 32 28 36

MFO 3Clearance of import and export cargoes P 160,323 P 227,169 P 249,447

Value of imports declared (FOB US $M) 38,919 64,851 67,500Value of exports processed (FOB US $M) 40,497 56,871 57,500

MFO 4Anti-smuggling campaign and implementation of judicial decisions, including filing of cases P 112,685 P 112,066 P 115,961

No. of persons/companies identified as being involved inillegal activ ities 100 60 70

MFO 5Enforcement of international commitments, includinganti-dumping provisions P 20,189 P 21,260 P 20,529

No. of cases and value of anti-social goods seized 22 14 30No. of cases where penalties are imposed as a resultof the enforcement of multilateral environment agreement 12 14 20TOTAL P 1,482,700 P 1,561,489 P 1,777,975

ParticularsTarget/Amount Target/AmountActual/Amount


FY 2009 MFO BUDGETBy MFO/By Expense Class

(in thousand pesos)

M F O 1Assessment and co llection 623,516 515,220 - 1 ,138,736 64.05%M F O 2Enforcement of tar iff and customs law s and regulations 214,341 38,961 - 253,302 14.25%M F O 3C learance of import and ex port cargoes 118,064 131,383 - 249,447 14.03%M F O 4 - Anti-smuggling campaign and implementation of jud icia l decisions, including filing of cases 104,639 11,322 - 115,961 6.52%M F O 5Enforcement of in ternational commitments, includinganti-dumping prov isions 17,490 3 ,039 - 20,529 1.15%

TOTAL 1,078,050 699,925 - 1 ,777,975 % S h are 60.63% 39.37% 0.00% 100.00%

N ote:F Y 2007 ex cludes P630,795,000 for C ustom's D uties and T ax es.F Y 2009 ex cludes P3,160,013,000 for one-time ex penditure (SGS liab ility )

TOTALC O % S h areParticu lars PS M OOE

142

By MFO (Total Budget = P1,777,975,000)

MFO 164.05%

MFO 214.25%

MFO 314.03%

MFO 46.52%

MFO 51.15%

By Expense Class (Total Budget = P1,777,975,000)

PS60.63%

MOOE39.37%

143

Legal Basis

Reorganization Act No. 1189 (July 2, 1904) created the Bureau of Internal Bureau (BIR), formallyorganized and made operational under the Secretary of Finance.

Executive Order No. 94 (October 1, 1947) re-established the BIR under the new Republic ofthe Philippines apart from Customs which, under the Japanese era, was known as the Bureauof Customs and Internal Revenue.Executive Order No. 392 (January 1, 1951) reorganized the BIR with the creation of an AssessmentDepartment under which a Withholding Tax Unit was placed when the unit was created later.

Republic Act No. 233 (June 19, 1959), or the Rewards Law, provided incentives to informers ontax evaders.

Republic Act No. 9335 (January 25, 2005), otherwise known as the Attrition Act of 2005, providedfor a system of rewards and sanctions to enhance revenue performance through the creation ofa Rewards and Incentives Fund and a Revenue Performance Evaluation Board within the BIRand the Bureau of Customs.

Mandate

The Bureau of Internal Revenue (BIR) assesses and collects all national internal revenue taxes,fees and charges; and enforces all forfeitures, penalties and fines connected therewith, includingthe execution of judgments in all cases decided in its favor by the Court of Tax Appeals and theordinary courts.

Bureau of Internal Revenue

144

Legal and Tax Policy Advice Services

Formulation, coordination, monitoring and evaluation of collection and assessment Collation, analysis, monitoring , generation and development of internal revenue statistics Enforcement of Internal Revenue laws

Collection and Assessment

Implementation of the tax information and education program Computer and Information Systems Services, including development & maintenance of computerized Management Information System (MIS) Enhancement of various tax systems and program

Taxpayer Compliance

Improve Internal Revenue Collection

Fiscal Strength

Assistance in the prosecution of civil and criminal cases Formulation of procedures and policies on tax fraud investigations and intelligence operations Enforcement of Internal Revenue laws

Economic Growth

LOGICAL FRAMEWORK (BIR)

Societal Goal

Sectoral Goal

Organizational Outcome

Major FinalOutputs

P/A/Ps

Improved Internal Revenue Collection

145

FY 2009 MFO BUDGET


MFO 1Collection and Assessment 1,996,997 1,225,920 53,005 3,275,922 49.63%MFO 2Legal and Tax Policy Advice Serv ices 946,801 591,808 25,962 1,564,571 23.70%MFO 3Taxpayer Compliance 1,075,235 656,390 29,207 1,760,832 26.67%

TOTAL 4,019,033 2,474,118 108,174 6,601,325 % S HARE 60.88% 37.48% 1.64% 100.00%

Particulars % S HAREPS MOOE CO TOTAL


M F O 1C o llect io n an d Assessmen t P 2,262,365 P 2,273,871 P 3,275,922Atta in collection target set by D BC CC ollection goal ( in M P) 714,199 844,950 968,527

M F O 2L eg al an d Tax Po licy Ad vice S ervices P 1,040,805 P 1,023,049 P 1,564,571N o. of ru lings v isited 4,268 4 ,572 5,226 M F O 3Taxp ayer C o mp lian ce P 1,199,150 P 1,179,555 P 1,760,832N o. of tax pay ers v isited /tax mapped 67,399 72,721 109,081TOTAL P 4,502,320 P 4,476,475 P 6,601,325N ote: Ex c ludes T ax R efund - F Y 2007 (P126.191M ), F Y 2008 (P732M ), and F Y 2009 (P500M )

Part icu larsF Y 2007 F Y 2008 F Y 2009

Actu al/Amo u n t Targ et/Amo u n t Targ et /Amo u n t

146

By MFO (Total Budget P6,601,325,000)

MFO 149.63%

MFO 326.67%

MFO 223.70%

By Expense Class (Total Budget P6,601,325,000)

PS60.88%

MOOE37.48%

CO1.64%

147

Legal Basis

Executive Order No. 127 (January 30, 1987) reorganized the Department of Finance (DOF),elevating thereby the Office of Local Government Finance to a Bureau.

Executive Order No. 292 (July 25, 1987), or the Administrative Code of 1987, further strengthenedthe operating bureaus under the DOF, including that of the Bureau of Local Governance Finance.

Mandate

The Bureau of Local Government Finance (BLGF) is responsible over the fiscal affairs of the localgovernment sector. It provides a catalyst role in assisting LGUs achieve sustainable and effectivefinancial management, making them contributors to national development objectives.

Bureau of Local Government Finance

148

LOGICAL FRAMEWORK (BLGF)

Societal Goal

Sectoral Goal

OrganizationalOutcome

Major Final Outputs

P/A/Ps

Economic Growth

Fiscal Strength

Fiscal Sustainability of LGUs

Improved Revenue Generation and Fund Management Efficiency of Local Treasurers and Assessors through Technical Capacity Building and Technical Supervision

Technical assistance, monitoring and evaluation of revenue generation projects/activities Technical and administrative supervision over local treasury and assessment operations

Tax Policy Services

Preparation and implementation of policies/guidelines/regulations governing local taxation and assessment Development of real property valuation standards Continuing review of LGC provisions, other relevant laws and issuances on local finances (classification and indexing)

149

FY 2009 MFO BUDGET


MFO 1 Improved revenue generation and fund 85,586 69,096 9,152 163,834 89.52%management efficiency of local treasurersand assessors through technical capacity building and technical supervisionMFO 2 Tax Policy Serv ices 12,089 5,842 1,248 19,179 10.48%TOTAL 97,675 74,938 10,400 183,013 % SHARE 53.37% 40.95% 5.68% 100.00%

Particulars PS % SHAREMOOE CO TOTAL


FY 2007 FY 2008 FY 2009

P 125,321 P 128,793 P 163,834

34,302 36,703 39,273 27,475 28,849 30,292

9,267 9,637 10,023 8,213 8,624 9,055

P 14,597 P 15,078 P 19,179

263

TOTAL P 139,918 P 143,871 P 183,013

Target/Amount Target/Amount

MFO 1Improved revenue generation and fund management efficiency of local treasurers and assessors through technical capacity building and technical supervision

Particulars Actual/Amount

Performance Indicators100% collection efficiency on the four (4) components of the Revenue Generation Program - Real Property Tax ( P' 000 ) - Business Tax ( P' 000 ) - Fees and Charges ( P' 000 ) - Economic Enterprises (P' 000 )

MFO 2Tax policy services

Performance IndicatorsNo. of requests acted upon with appropriate opinions or rulings Demand - Driven Demand - Driven

150

By MFO (Total Budget = P183,013,000)

MFO 189.52%

MFO 210.48%


PS53.37%

CO5.68%

MOOE40.95%

151

Legal Basis

Aguinaldo Act of 1897 (November 2, 1897), appointing the nation’s first National Treasurer,created the Bureau of Treasury whose principal functions were the imposition and collection oftaxes.

Philippine Commission Act (October 3,1900) created the Bureau of Insular Treasury taskedto receive and disburse public funds and to account for same, and provided for the supervisionof the country’s banks.

Act No. 222 (September 6, 1901) placed the Bureau of Insular Treasury under the executivecontrol of the Department of Finance and Justice.

Act No. 1407 (October 26, 1905), as amended by Act No. 1679, renamed the Bureau of InsularTreasury to Bureau of the Treasury (BTr), given the additional task of coinage and currencysupervision.

Executive Order No. 449 (October 17, 1997) reorganized the BTr under the Department ofFinance.

Mandate

The Bureau of the Treasury (BTr) acts as principal custodian of the financial assets of the NationalGovernment (NG). It makes funds available for the various programs and projects of the government.It assists in the formulation of policies on borrowing, investment and capital market development, inmanaging the cash resources, collecting taxes made by NG and guarantee forward cover fees dueNG, and in controlling and servicing its public debt, both foreign or domestic.

Bureau of the Treasury

152

LOGICAL FRAMEWORK (BTr)

Societal Goal

Sectoral Goal

OrganizationalOutcome

Major Final Outputs

P/A/Ps Investment of excess

funds Replenishment of MDS checks Making funds available for payment of debt services

Issuance of government securities Monitoring and servicing of NG debt Maintenance of stable interest rates and official Registry of Scripless Securities

Accounting of NG financial / fiscal transactions Generation, compilation and dissemination of statistical reports in accordance with international standards Monitoring of national collections and disbursements

Development and maintenance of a portfolio management framework that promotes the government’s debt management objectives Management of financial risk (market, credit, liquidity, funding, operational) in a manner consistent with the government’s fiscal strategy and the Bureau’s internal policies

Cash Management Services

Debt Management Services

Accounting and Monitoring of Reports of NG Financial and Fiscal Transactions

Assistance in Fiscal and Debt Policy Formulation and Risk Management

Economic Growth

Fiscal Strength

National Government’s Fiscal Sustainability

153


FY 2007 FY 2008 FY 2009

MFO 1 Cash Management S ervices P 51,840 P 38,382 P 283,869Ensuring enough funds to cover the periodic requirement of the government (in MP)

Interest income on deposits (in MP) 2,441 3,272 3,413 Interest income on BSF ISSF 27,055 32,057 27,925

MFO 2 Debt Management S ervices P 75,713 P 48,993 P 69,934Cost of government debt portfolioVolume of government securities issued (in MP)

T-Bills 718,747 685,551 566,677T-Bonds 283,273 237,720 304,371MFO 3 Accounting and Monitoring of Reports ofNG Financial and Fiscal Transactions P 314,539 P 293,720 P 327,382

% accuracy and completeness of financial report submitted to COA and 100% 100% 100%other fiscal authorities acceptance acceptance acceptance

% accuracy and completeness of 100% 100% 100%statistical data series accurate and accurate and accurate and

complete complete completeMFO 4 Assistance in Fiscal Debt PolicyFormulation as well as Risk Management

% acceptability of the frameworks and 100%attainment of public debt management goals acceptable

% efficiency of public debt management 100% efficientlymanaged debt

% acceptance of sufficient operational 100% acceptance guidelines of guidelines

GRAND TOTAL P 442,092 P 381,095 P 681,185

Particulars Actual/Amount Target/Amount Target/Amount

Note: FY 2007 excludes customs duties and taxes (P4,905,003,000); and release of excess income for the rehabilitation ofAyuntamiento Bldg. (P500,173,000).

154

FY 2009 MFO BUDGET


M F O 1 C ash M anagement Serv ices 32,495 245,551 5 ,823 283,869 41.67%M F O 2 D ebt M anagement Serv ices 36,500 25,901 7 ,533 69,934 10.27%M F O 3 Accounting and M onitor ing of R eports of 214,894 72,073 40,415 327,382 48.06%N G F inancial and F iscal T ransactionsM F O 4 Assistance in F iscal D ebt Policy - - - - 0%F ormulation as w ell as R isk M anagementTOTAL 283,889 343,525 53,771 681,185 % S H AR E 41.68% 50.43% 7.89% 100.00%

Particu lars % S H AR EPS M OOE C O TOTAL


MFO 348.06%

MFO 210.27%

MFO 141.67%

By Expense Class(Total Budget = P681,185,000)

PS41.68%

CO7.89%

MOOE50.43%

155

Legal Basis

Presidential Decree No. 25 (s.1972), as amended, created a Central Board of Tax Appeals,the forerunner of the Central Board of Assessment Appeals, composed of the Secretary ofFinance, as Chairman; and the Secretaries of Justice and of Local Government and CommunityDevelopment, as members.

Presidential Decree No. 464 (June 1, 1974), or the Real Property Tax Code, authorized theCentral Board of Assessment Appeals (CBAA) with the same composition, powers and dutiesof what used to be the Central Board of Tax Appeals.

Republic Act No. 7160 (October 10,1991), otherwise known as the Local Government Code of1991, transformed the CBAA into an independent collegial appellate quasi-judicial body whichdecides on appeal before it actions taken by the Local Board of Assessment Appeals ofmunicipalities and cities of Metro Manila and provincial and city Local Board of AssessmentAppeals nationwide.

Mandate

The Central Board of Assessment Appeals (CBAA) warrants the observance of the due-process-of-law clause in the assessment and collection of real property taxes by the government, and ensuresthat the taxpayers are given the opportunity to be heard.

Central Board of Assesment Appeals

156

LOGICAL FRAMEWORK (CBAA)

Societal Goal

Sectoral Goal


Major Final Output

P/A/P

Economic Growth

Fiscal Strength

Fair and Equitable Real Property TaxAssessment

Adjudicatory Services

Adjudication of Appealed Cases on RealProperty Assessment

157

FY 2009 MFO BUDGET


Particu lars PS MOOE C O To tal % S h are

MF O 7,687 1,069 - 8,756 100%Adjudicatory Serv icesTo tal 7,687 1,069 - 8,756 % S h are 87.79% 12.21% 0.00% 100.00%


PS87.79%

MOOE12.21%


F Y 2 0 0 7 F Y 2 0 0 8 F Y 2 0 0 9

M F O P 8 ,0 2 6 P 7 ,8 3 6 P 8 ,7 5 6 A d ju d ic a t o ry S e rv ic e s

H e a r in g s /O c u la r In s p e c tio n s 2 6 2 5 2 6 D e c is io n s 1 3 1 0 1 3

T o t a l P 8 ,0 2 6 P 7 ,8 3 6 P 8 ,7 5 6

P a r t ic u la rs A c t u a l /A m o u n t T a rg e t /A m o u n t T a rg e t /A m o u n t

158

Legal Basis

The Philippine Constitution of 1987 provides for Congress to create an Agency that willpromote the viability and growth of cooperatives as instruments for social justice and economicdevelopment.

Republic Act No. 6939 (March 10, 1990) created the Cooperative Development Authority (CDA)under the Office of the President (OP) to unify government efforts in the promotion anddevelopment of cooperatives and rationalize rules and policies on cooperative registrationunder one agency.

Executive Order No. 332 (July 16, 2004) transferred the CDA from OP to the Department ofFinance.

Mandate

The Cooperative Development Authority (CDA), as the lead government agency in the regulation ofcooperatives, promotes the viability and growth of cooperatives as instruments of equity, socialjustice, and economic development.

Cooperative Development Authority

159

LOGICAL FRAMEWORK (CDA)

Societal Goal

Sectoral Goal


Major Final Outputs

P/A/Ps

Economic Growth and Social Development

Progressive Cooperative Enterprises

Financially-Stable and Socially-Responsive Cooperative Enterprises

Regulatory Services

Development Services

Registration of cooperatives, including the formulation of guidelines, rules and regulations and evaluation of financial statements and general information sheets Conduct of investigation and hearing of cases involving cooperatives and the provision of legal assistance

Formulation & implementation of the cooperative sector’s Medium Term Development Plan (MTDP) Formulation of standards for global competitiveness of cooperatives Provision of technical assistance (including assistance & franchise to utility cooperatives & their diversification of operations)

160

Particulars PS MOOE CO Total % S hareMFO 1Regulatory Serv ices 127,034 45,125 8,416 180,575 69.82%MFO 2Developmenteal Serv ices 57,316 18,365 2,374 78,055 30.18%Total 184,350 63,490 10,790 258,630 % S hare 71.28% 24.55% 4.17% 100.00%

FY 2009 MFO BUDGET

MFO 169.82%

MFO 230.18%



F Y 2007 F Y 2008 F Y 2009

M F O 1R eg u lato ry services P 173,142 P 167,222 P 180,575

N o. o f coops registered 69,800 71,385 72,780

Efficiency rate of opera ting coop's compliance w ith admin istra tiv e requirements

37 ,522 (68% )

41,274 (75% )

45 ,401 (82% )

M F O 2D evelo p men tal serv ices P 74,129 P 72,282 P 78,055

N o. o f po licies/ standards rev iew ed/ enhanced 6 6 6N o. o f coop-members/ beneficiar ies capacita ted/ tra ined 49,102 14,620 16,082TOTAL P 247,271 P 239,504 P 258,630

Targ et/Amo n t Targ et /Amo u n tPart icu lars Actu al/Amo u n t

By MFO(Total Budget = P258,630,000)


161

Legal Basis

Presidential Decree No. 776 (August 24, 1975) created the Fiscal Incentives Review Board(FIRB) as an inter-agency committee tasked with determining tax exemptions to be withdrawn,revoked, or suspended under certain fiscal parameters.

Presidential Decree No. 1931 (June 11, 1984) and Presidential Decree No. 1955 (October 15,1984) withdrew the tax exemptions of government and private entities, respectively.

Executive Order No. 93 (March 10, 1987) withdrew on a general basis the tax and dutyexemptions of both government and private entities and instituted a system of tax subsidy totake care of tax and duty liabilities of government entities affected thereby for reason of fiscaltransparency.

Mandate

The Fiscal Incentives Review Board (FIRB) rationalizes the provisions of fiscal privileges (tax andduty exemptions or tax subsidy) to government and private entities, improves the fiscal monitoringaspects of government corporations, harmonizes the provisions of fiscal privileges with the policythrusts of the government, and provides technical assistance to government and private entitiesand authorities concerned with fiscal privileges.

Fiscal Incentives Review Board

162

Fiscal Strength

Fiscal Policies, Plans and Programs for Management of Tax Subsidy provisions under the GAA

Fiscal Transparency

Tax Subsidy Grant to Qualified GOCCs

Effective tax subsidy programming and formulation and coordination with Congress on tax subsidy and related policies

Effective policies, plans and programs for the grant of tax subsidy to GOCCs

Effective oversight criteria/policies

Fiscal Sustainability of Tax Subsidized GOCCs

Oversight on Tax Subsidy Disposition

LOGICAL FRAMEWORK (FIRB)

Societal Goal

Sectoral Goal

OrganizationalOutcomes

Major Final Outputs

P/A/Ps

Economic Growth

of Tax-Subsidized GOCCs

& Programs for Management of Tax to Qualified GOCCs


163

FY 2009 MFO BUDGET


Particulars PS MOOE CO Total % S hareMFO 1 Fiscal policies, plans and programs for management of tax subsidy 48 48 39.02%provisions under the GAA

MFO 2 Tax subsidy grant to qualified GOCCs 41 41 33.33%MFO 3 Oversight on tax subsidy disposition 34 34 27.65%Total 123 123 100%% Share 100% 100%

By MFO (Total Budget = P123,000)

MFO 233.33%

MFO 139.02%

MFO 327.65%


FY 2007 FY 2008 FY 2009

MFO 1 Fiscal policies, plans and programs for management of tax subsidy provisions under the GAA P 44 P 48 P 48Number of studies/concept papers on tax subsidy 13 Open Open MFO 2 Tax subsidy grant to qualified GOCCs P 37 P 41 P 41Number of FIRB Resolutions issued 16 Open Open Number of Certificates of Entitlement to Tax Subsidy issued 26 Open Open MFO 3 Oversight on tax subsidy disposition P 32 P 34 P 34Number of letter-replies/assistance to queries Open Open Open Total P 113 P 123 P 123

ParticularsActual/Amount Target/Amount Target/Amount

164

Legal Basis

Republic Act No. 275 (January 3, 1949) created the Office of the Insurance Commissioner(from the Bureau of Banking) to assess insurance companies, insurance agents, and insurance-related matters.

Presidential Decree No. 63 (November 20, 1972) amended certain sections of the InsuranceCommission Act and provided that the Office of the Insurance Commissioner be known as theInsurance Commission.

Mandate

The Insurance Commission (IC) promotes growth and financial stability of insurance companies,professionalizes insurance services, and develops insurance consciousness among the generalpopulace. It is responsible for establishing a sound national insurance market, and for safeguardingthe rights and interests of the insuring public.

Insurance Commission

165

LOGICAL FRAMEWORK (IC)

Societal Goal

Sectoral Goal


Major Final Outputs

P/A/Ps

Economic Growth

Financial Sector Stability & Growth

Insurance Industry Stability and Development

Regulatory Services Supervisoryand Examination Services

Promulgation and implementationof policies, rules and regulationsgoverning the operation of entitiesengaged in insurance activitiesand institutions with benevolentand charitable features

Licensing of insurancecompanies, general agent’sbrokers, adjusters, etc. as well asprocessing of reinsurance treatiesand investment of insurancecompanies, benevolentassociations and charitable trustand conducting insurance agent’sexaminations

Consumer and AdjudicatoryServices

Examination of the financialconditions of entities engaged inthe insurance business, mutualbenefits associations andcharitable trust

Review of premiums imposed bynon-life companies and statisticalreports of adjusters to determinecompliance with establishedstandards

Evaluation of financial reports ofinsurance companies mutualbenefits associations andcharitable trusts, including theissuance of certifications pertainingto the financial conditions of suchcompanies

Adjudication of claims andcomplaints involving loss, damageor liability incurred by an insurerunder any kind of policy orcontract of insurance of suretyship

166

FY 2009 MFO BUDGET



M F O 1 R e g u l a t o r y S e r v ic e s P 6 6 , 4 9 0 P 9 2 ,7 7 4 P 6 9 ,7 0 9 L ic e n s e s / C e r tific a te s o f A u th o r ity &R e g is tr a tio n I s s u e d 4 4 , 4 8 4 5 3 , 3 8 1 5 6 ,0 0 0I n c o m e fr o m F o r e x is s u a n c e ( P - 0 0 0 ) 5 8 , 6 0 0 6 4 , 4 6 0 6 7 ,0 0 0M F O 2S u p e r v is o r y a n d E x a m in a t i o n S e r v ic e s P 2 9 , 6 0 4 P 2 6 ,6 4 7 P 6 7 ,4 5 8P e n a lty c o lle c te d fr o m v io la tio no f ta r iff r u le s 1 2 9 , 0 0 0 1 4 1 , 9 0 0 1 4 8 ,0 0 0M F O 3 C o n s u m e r a n d A d ju d ic a t o r y S e r v ic e s P 6 , 3 4 2 P 6 ,8 7 0 P 1 8 ,9 7 9I n fo r m a tio n /a s s is ta n c e r e n d e r e d 1 8 , 8 3 0 2 0 , 7 1 3 2 2 ,0 0 0C la im s s e ttle d /a d ju d ic a te d 7 7 3 7 5 0 7 8 0T O T A L P 1 0 2 , 4 3 6 P 1 2 6 , 2 9 1 P 1 5 6 ,1 4 6

P a r t i c u la r sF Y 2 0 0 7 F Y 2 0 0 8 F Y 2 0 0 9

A c t u a l /A m o u n t T a r g e t /A m o u n t T a r g e t /A m o u n t


MFO 243.20%

MFO 144.64%

MFO 312.16%

By Expense C lass(Total Budget = P156,146,00)

PS37.21%

MOOE26.91%

CO35.88%

167

Legal Basis

Republic Act No. 2211 (May 15, 1959) created the Joint Legislative Executive Tax Commission(JLETC), institutionalizing tax research in the Philippines.

Presidential Decree No. 74 (December 6, 1972) organized the National Tax Research Center(NTRC) (from the conversion of the JLETC’s Technical Staff) as a single-headed agency underthe administrative supervision of the National Economic and Development Authority (NEDA).

Executive Order No. 127 (January 30, 1987) transferred the NTRC to the Department of Financeas an attached agency.

Mandate

The National Tax Research Center (NTRC) conducts continuing research in taxation “to restructurethe tax system and raise the level of tax consciousness among our people to achieve a faster rateof economic growth and to bring about a more equitable distribution of wealth and income.”

National Tax Research Center

168

LOGICAL FRAMEWORK (NTRC)

Societal Goal

Sectoral Goal


Major Final Output

P/A/P

Economic Growth

Tax Policy Research Services

Improved Tax System and Fair Distribution of Tax Burden among Taxpayers

Fiscal Strength

Tax System and Tax Policy Studies and Surveys and Publication

Number of Studies/Tax Assessments/Comments on Bills/Proposals and Special Projects Completed and Other Technical Assistance

Rendered to Requesting Parties and Concerned Authorities Within the Acceptable Timeframe

169


P a rt ic u la rs P S M O O E C O To t a l % S h a re

M F O 2 4 ,3 9 6 1 1 ,2 9 9 2 0 0 3 5 ,8 9 5 1 0 0 %T a x p o licy r e se a r ch se r v ice sTo t a l 2 4 ,3 9 6 1 1 ,2 9 9 2 0 0 3 5 ,8 9 5 % S h a re 6 7 .9 6 % 3 1 .4 8 % 0 .5 6 % 1 0 0 .0 0 %

FY 2009 MFO BUDGET

By Expenses Class (Total Budget = P35,895,000)

PS67.96%

CO0.56%

MOOE31.48%


FY 2007 FY 2008 FY 2009

MFO Tax policy research services P 35,910 P 35,731 P 35,895Number of studies, tax proposals, tax assessments 20 studies 24 studies 24 studiesand evaluations, and comments made aimed at 10 Tax 10 Tax 10 Tax rationalizing the tax structure and improv ing tax assessments assessments assessmentsfiscal policy 25 evaluations 30 evaluations 30 evaluations

Total P 35,910 P 35,731 P 35,895

Target/Amount Target/AmountParticulars Actual/Amount

170

Legal Basis

Executive Order No. 323 (December 6, 2000) created the Privatization Council (PrC) andPrivatization and Management Office (PMO) to promote an orderly, coordinated, and efficientprivatization of government corporations, assets, activities and idle properties.

Executive Order No. 47 (November 17, 2005) directed the merger of the Board of Liquidators(BoL) with the PMO, the latter as the surviving entity to undertake the functions of BoL underExecutive Order No. 371, series 1950, as amended.

Mandate:

The Privatization and Management Office (PMO) generates income through the privatization/liquidation of government corporations and properties with the prior approval of the PrivatizationCouncil.

Privatization and Management Office

171

LOGICAL FRAMEWORK (PMO)

Societal Goal

Sectoral Goal


Major Final Outputs

P/A/Ps

Economic Growth

Fiscal Strength

Promote an orderly, coordinated,and efficient privatization/dispositionof assets, activities and other propertiestransferred to PMO

Sale, disposition/liquidation of assets,activities and other properties assignedby the Privatization Council

Possession, preservation/conservation and administrationof transferred assets

Undertake the marketing/ disposition/liquidation of assets/properties

Explore alternative options/ dispositionsof assets

Undertake rehabilitation of assets as necessaryto conserve their value

Extrajudicially attach and repossess propertiesof deliquent end-users and settle conflict of claims

172

FY 2008 FY 2009

MFO 1 S ale, disposition/liquidation of assets, activities and other properties assigned by thePrivatization Council P 17,653 P 24,687 P 24,836

Remittance of disposition proceeds to BTr (P'000) 978,421 500,000 500,000

MFO 2 Possession, preservation/conservationand administration of transferred assets P 8,308 P 11,618 P 11,688

No. of cases studied 537 Open Open

Total P 25,961 P 36,305 P 36,524

Target/AmountActual/AmountParticulars

FY 2007

Target/Amount

Particulars PS MOOE CO Total % S hare

MFO 1 Sale, disposition/liquidation of assets, 19,482 5,354 - 24,836 68.00%activ ities and other properties assigned by thePrivatization Council

MFO 2 Possession, preservation/conservation 9,169 2,519 - 11,688 32.00%and administration of transferred assets

Total 28,651 7,873 - 36,524 % Share 78.44% 21.56% 0.00% 100.00%

FY 2009 MFO BUDGETBy MFO/By Expense Class

(In thousand pesos)


173


PS78.44%

MOOE21.56%


MFO 168.00%

MFO 232.00%

department of finance - dbm.gov.ph · zbiak-na-bato constitution (november 1, 1897) created under...

Documents